While it may not be getting rave reviews from its customers, The Stars Group does appear to be keeping one segment of the populace happy – its stockholders. Now a top online market bigwig is talking up the stock on both exchanges it is traded on as a “favorable” holding for the future.
Joey Frenette of The Motley Fool analyzed The Stars Group, which is an international company that trades on both the Toronto Stock Exchange and the NASDAQ in New York City. Citing several factors about 21st century living – a “stay at home” economy, as Frenette puts it, that has everything delivered to the home rather than venturing out – Frenette discusses how, with online casinos and poker, gambling could be the next “big” thing to be moving into that framework.
“I believe technology is going to disrupt the gambling industry in a huge way over the next few years, as countries around the world become open to online gambling,” Frenette writes on The Motley Fool’s website. “Physical casinos are extravagant, but they’re old fashioned, and, honestly, who would want to travel to a casino when you could log in from the comfort of your own home to play your favourite games, while you spend time with friends and family? You could even play poker from your smartphone on the commute home!”
Therein lies the rub, however – the growth of online casino gaming and poker, especially in the States of America. Frenette estimates that, if every state were to allow for online poker alone, it would be a $2 billion industry. The Stars Group has been putting themselves in the discussion in every state that has broached the subject of online gaming and poker but, as of yet, there have been no other states that have opened their doors to online gaming and poker since the original triumvirate of Nevada, New Jersey and Delaware passed regulations in 2013.
The Stars Group recently adjusted its Fiscal Year 2017 estimations, moving them upwards after further examination. This, along with a review of the valuation of The Stars Group, has brought Frenette around to viewing the company’s stock as a favorable buy. “Although there’s a high degree of political uncertainty involved with The Stars Group, I think the dirt-cheap valuation makes the company a must-have for long-term investors who are bullish on the future of online gambling.”
The Stars Group – which used to be known as Amaya Gaming until a name change earlier this year – has been trying to gain traction since that name change on the markets. As recent as last month, The Stars Group has been trading at around $13 on the NASDAQ market. The recent World Championships of Online Poker (WCOOP) and its success has helped in the business world also, demonstrating to potential stockholders that there is a strong market for The Stars Group’s products in the industry. Over the past month, The Stars Group has seen its stock price rise to $20.35 at the close of business on Friday.
There has been a similar increase for The Stars Group on the Toronto Stock Exchange. After hovering around $17.50 per share in January, The Stars Group has rocketed upwards. The company’s stock price peaked at $26.50 in May and settled in around $20 at the beginning of September. As of the close of business on Friday, The Stars Group stock was going for $25.51 a share.
If several key things were to occur – regulating in larger states in the U. S. or an overall regulatory structure in the country, expansion into Asia or other markets or a handful of other profit increasers – The Stars Group would be poised to strike. It is easy to see why there is optimism in the markets regarding the company, but there is also trepidation should continued delays in regulation or other pitfalls hit the organization.
The post The Stars Group Viewed as Favorable Stock Buy by Market Bigwig appeared first on Poker News Daily.


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